Gold, Silver, Platinum and Palladium are collectively known as Precious Metal. As name suggest, they are precious and difficult to mine. These metals are rare and naturally occurring in metallic chemical element form. Their rarity makes them awfully expensive and are indispensable to industries and investors alike. Unlike other metals they are weatherproof and can be store for years without losing their purity and quantity. Since ancient times, precious metals like gold, silver, platinum and palladium were used as currency but nowadays these precious metals are used for jewelry, saving and for investment.
Precious metals are also used in many industries depending on the needs of the particular industry. Automobile and electronic device making industries are often using precious metals like gold, silver, and palladium as an important component. The uses of precious metals can vary extensively depending on the nature of the metal.
Gold is unique in nature. Nowadays gold is primarily used as jewelry and main hedging device by many countries and traders. Gold is also a good conductor of electricity, which make it important component for many industries. Apart from jewelry, gold is used in electronics, medicine, space and even in making of medals.
Silver is second most important precious metal after gold. Silver is less rare than gold and its economic value is also lesser than gold, still it has good value in present era. Like gold, silver is also used in making jewelries and utensils. Silver is also used as saving instrument in many countries. Industrial use of silver is not less than gold. Because of its properties silver is used in silver cutlery, solar and nuclear energy, photography, antibiotics, and electronics industries.
Platinum has been used extensively by people since the ancient Egyptian era as adornments. In the modern world today, platinum is used in computer parts, catalytic converter, oil refining and jewelry.
Palladium is quite similar to that of platinum like its solidity, pigmentation and catalytic capabilities, its uses are very similar to that of platinum.
Precious metals especially gold and silver are still used in the free market to serve as money since time immemorial. Nowadays, as the usage of the metals are diversified, precious metals holds a distinctive position in the investment field. Investors use precious metals as an alternative asset. They also use it to protect against price increase and financial disorder therefore making investments in precious metal very sought after. Owning precious metals could also be seen as a way of diversifying one’s investment portfolio as this method is a non-correlated asset compared to other assets.